Investing in South Africa’s research & intellectual property

South Africa is on the cusp of a technological revolution with a wealth of untapped university intellectual property and technology innovation ready for commercialization. Historically, many groundbreaking projects developed in the country have gone dormant or been exploited by foreign entities, providing little benefit to South Africa. However, the University Technology Fund is leading the charge to demonstrate that university technology in South Africa is a valuable asset for investment, similar to global standards. Wayne Stocks, Fund Manager at the University Technology Fund, shared insights into the fund's mission and success in harnessing South Africa's research and innovation potential. Stocks revealed that the fund has invested over 150 million rand in 24 companies from six universities, showing over 80% growth in their portfolio in just four years. The fund's mandate is to commercialize intellectual property and technology originating from South African universities. They evaluate the commercial potential of technologies based on their novelty, protectability, market fit, and scalability. While acknowledging the importance of research for social impact, the fund focuses on commercializing technologies for financial gain and impact. The relationship between the fund, universities, and researchers is established through licensing agreements and equity ownership, creating a collaborative ecosystem to drive technology commercialization. While some universities have successfully spun out technology companies, others face challenges due to limited funding, weak research and development capabilities, and underdeveloped technology transfer offices. Stocks emphasized the importance of universities being in proximity to venture capital hubs and industry networks for successful commercialization. The fund's portfolio has seen significant traction in sectors like healthcare equipment and services, climate solutions, energy, and biotech, reflecting the diverse range of technologies being developed in South Africa. With a strong focus on solving local challenges and leveraging multidisciplinary expertise, South African universities are poised to drive innovation and economic growth through technology commercialization. By bridging the gap between academia and industry, the University Technology Fund is paving the way for a thriving ecosystem of innovation and entrepreneurship in South Africa.